US Module

The table in this article summarises the findings on equity IRRs for both reset and non-reset CLO equity tranches. Reset tranches have materially outperformed their non-reset counterparts. Generally, stronger-performing deals are more likely to undergo a reset. Underperforming deals often face challenges in resetting due to the substantial equity capital required, and equity investors may be reluctant to commit further capital to weaker-performing transactions. That said, exceptions do exist.

EU CLO equity has outperformed US CLO equity, based on BWIC colour from a sample of approximately 446 equity tranches traded since July 2024 (source: SCI). This trend is also consistent with findings from 2.0 CLO deals that have been fully liquidated to date, according to CLO Research.

The table below summarises the performance of US CLO deals that have been redeemed year-to-date.

This analysis examines a sample of 1,456 deals currently within their reinvestment periods.

Since January 2020, OHA has generated impressive, above-average inception-to-date total return alpha, driven by its consistent focus on minimising portfolio losses. This approach relies on rigorous, ongoing credit research and the regular application of that analysis to portfolio re-optimisation. The manager’s investment strategy is built on the belief that close collaboration across industry teams and integrated access to all asset classes within leveraged finance provide a robust foundation for research and portfolio construction.

US CLO Manager Report: GoldenTree AM

US CLO Manager Report: CSAM

US CLO Manager Report: Elmwood Asset Management

The manager has built its investment strategy around the synergy between its BSL and direct lending businesses, maintaining a clear focus on areas where it holds a competitive edge. Guided by the principle of prioritising quality over quantity, the manager is not subject to the pressures of public shareholders to rapidly grow assets under management. Instead, it remains steadfastly focused on making prudent, long-term investment decisions—each and every day—that safeguard investors’ capital.

US CLO Manager Report: CIFC

US CLO Manager Report: Blackstone

The manager prioritises fundamental credit analysis and active risk management—taking risk only when they believe the risk premium is compelling, and remaining disciplined when credit spreads are tight. Their focus is on consistently delivering attractive risk-adjusted returns.

US CLO Manager Report: PGIM

US CLO Manager Report: Sixth Street

US CLO Manager Report: KKR